The new administration is determined to close the digital divide once and for all, but the details have yet to be ironed out
Broadband internet is the new electricity: In a lengthy release published by the White House on Wednesday, this is the sentence that stands out and best summarises Biden’s resolve to address America’s connectivity problems. With more than 30m Americans living in areas where there is no broadband infrastructure providing “minimally acceptable speeds”, and take-up impacted by some of the highest broadband prices among OECD countries, Biden is determined to shake up a market that has often been seen as lacking competition.
High-speed broadband for all by 2029? Biden is outdoing recent legislative initiatives that Congress has put forward – including a $94bn plan proposed by some prominent Democrats – and promises to go even further and invest $100bn to bring “future proof” broadband to underserved areas, so that 100% coverage is reached. A deadline by which to reach this target hasn’t been given, but capital investment in the infrastructure is expected to be about 1% of the GDP over eight years.
A role to play for municipal networks: The $100bn plan pledges to prioritise networks affiliated with local governments, non-profits, and co-operatives, which have less pressure to be profitable and can more easily commit to serve entire communities. These networks will also play a key role in spurring competition. In line with his pre-election manifesto, Biden is committing to lifting barriers that currently prevent these providers from competing with private operators at the retail level.
The devil will be in the detail: Now that the intention has been stated, the detail of how to pursue these objectives will matter. In a blog post, AT&T conceded that the current 25/3Mbps definition of broadband is too low, but warned that new definitions should not preclude fixed wireless (for example by setting an exceedingly high or symmetrical upload speed). This is important because it might end up making bigger the areas considered underserved, thereby directing funds to areas that do not really need them. This could be a strategic mistake, especially in light of the progress made by wireless broadband with 5G. Experience from elsewhere, such as with Australia’s NBN, suggests that ruling out a technology mix from the outset is not a good idea.
